Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Falcon's total

Transcribed Image Text:Falcon Industries provided the following annual manufacturing overhead cost
budget:
Description
Amount
Variable manufacturing overhead costs $85,600
Fixed manufacturing overhead costs
$60,300
Normal production level in units
Standard labor hours per unit
6,200
5
During the year, 6,000 units were produced, 29,500 hours were worked, and the
actual manufacturing overhead was $168,500. Actual fixed manufacturing
overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead
is applied on the basis of direct labor hours. Falcon's total overhead variance is
a. $29,250 U.
b. $27,200 U.
c. $24,380 U.
d. $129,200 U.
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